Deutz has been relying quite a lot on the progress planned in China even before the spread of the Covid-19 pandemic. Such a progress actually foresees some steps: here’s an update about these.
Deutz and diesel engine maker Beinei’s new factory for contract manufacturing has been completed. This means that local production of the 2.9 and 6.1 engine series can commence in early 2021 as planned. Engines for aerial work platforms, forklift trucks, and smaller construction equipment will be made at the site in the port city of Tianjin, which will serve as the production hub for the Asian market.
Deutz and the progress in China: the projects shared with Sany
Another key project for Deutz expansion in China is the joint venture with China’s largest construction equipment manufacturer Sany, with the objective to raise the annual production volume of approximately 7,000 units achieved in 2019 to around 20,000 engines in 2020.
The Deutz-Sany assembly plant in Kunshan produces engines for trucks, construction equipment (bauma China 2020 will start in a few days…), and concrete pumps. This joint venture, established in 2019, has allowed Deutz to consolidate and build on its position as an experienced technology partner in China. The two joint venture partners are currently building a new engine plant in Changsha, which is scheduled to be completed at the end of 2021.
«The implementation of our China strategy is progressing according to plan. The fact that current demand means we have been able to increase the 2022 revenue target for China from around 500 million euro to roughly 800 million euro is a tremendous achievement, particularly given the challenges presented by the coronavirus pandemic», said Deutz CEO, Frank Hiller.
Deutz to increase market penetration in Eastern Europe
There’s not only China in Deutz’s thoughts. In fact, the global manufacturer has also announced the acquisition of the subsidiaries Deutz Austria, Motorcenter Austria and Pro Motor Servis CZ of Vienna-based Pro Motor Beteiligungsgesellschaft. The subsidiaries sell and service diesel engines in Austria, Slovakia, Slovenia, the Czech Republic, and Hungary.
«The acquisition of these three companies provides us with direct market access in the aforementioned regions. This will give us much greater proximity to our customers there, enabling us to further expand our service network and generate additional growth in our profitable service business», explains Michael Wellenzohn, member of the Deutz Board of Management responsible for sales, marketing, and service.